An Amtrak train rolls past the Pacific Steel foundry in Berkeley, Calif. on Wednesday, September 13, 2006. The third-largest steel mill in the country was slapped with two lawsuits seeking to curb the acrid smell that's emitted from the plant.
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An Amtrak train rolls past the Pacific Steel foundry in Berkeley,...

BERKELEY / Pacific Steel to reduce toxic emissions / Company makes its first settlement with environment group

Pacific Steel, which for years has made West Berkeley smell like a burning pot handle, announced Wednesday it had reached an agreement with an environmental group to cut toxic emissions.

The country's third-largest steel foundry, whose smokestacks emit several tons of carbon monoxide, manganese, phenol and other pollutants annually, reached the out-of-court settlement after being sued for allegedly violating the Clean Air Act.

"We're extremely pleased," said Adrienne Bloch, senior staff attorney for Communities for a Better Environment in Oakland, which brought the suit. "It won't solve everything, but it's a good start."

A federal judge in August denied the group's request for a preliminary injunction, but ordered mediation for the two sides to work out a settlement.

The agreement stipulates that the company only use scrap metal that's free of lead, mercury, plastic and substances that emit toxins when melted. The company must order scrap suppliers to only provide pure metal, and it must inspect the scrap purchases for contaminants and keep written records of what's used.

In addition, the company agreed to put $350,000 into a fund to pay for equipment and programs to cut toxic emissions, which must be reduced by 2 tons within three years. Leftover funds will go to a community foundation.

A committee whose members represent the company, Communities for a Better Environment and the steelworkers union will meet quarterly to decide how to spend the money.

The agreement also allows Communities for a Better Environment to visit the factory several times a year for inspections.

"Pacific Steel welcomes this new spirit of cooperation," said company spokeswoman Elisabeth Jewel. "They really do want to be a good neighbor and move forward in a positive way."

Neighborhood reaction to the settlement, however, appeared to be critical.

Andrew Galpern, a volunteer with West Berkeley Alliance for Clean Air and Safe Jobs, a neighborhood group, said the agreement should have included air testing around the neighborhood, a survey of health problems suffered by neighbors and factory employees, and a requirement that Pacific Steel release all its test results to the public.

"Remember, this factory is less than a mile from schools, parks, restaurants, day care centers and churches," Galpern said. "A little less poison in the air? It's not much of an improvement."

After years of haggling with environmental groups, the city of Berkeley and the Bay Area Air Quality Management District, Pacific Steel agreed to the settlement to avoid a lengthy legal battle, Jewel said.

"Protracted litigation is not in the best interest of any of the parties," she said.

The family-owned company, which has been in West Berkeley for 73 years, has never before struck an agreement with an environmental group, Jewel said.

The settlement does not apply to a lawsuit filed last fall by the Bay Area Air Quality Management District. A hearing has not yet been scheduled for that suit.

In October, Pacific Steel installed a carbon filter on the smokestack at plant No. 3, which environmental groups said was the primary source of pollution. All three plants are now equipped with carbon filters, which reduce toxic emissions and the stench neighbors have complained about for years.

The city is hosting a community meeting on Pacific Steel at 7 p.m. Wednesday at the West Berkeley Senior Center, 1901 Sixth St., Berkeley.